It is enacted by the General Assembly as follows:

SECTION 1. Chapter 42-10 of the General Laws entitled "Treasury Department" is hereby amended by adding thereto the following section:

{ADD 42-10-24. Payment of Bank Service Fees. -- The general treasurer may: (1) pay fees incurred by the state for banking services with funds from the short term investment earnings of the general fund and (2) deduct bank service fees directly attributable to funds, other than the general fund, from the earnings credited to such other funds. ADD}

SECTION 2. The provisions of this act are severable.

SECTION 3. This act shall take effect upon passage.